IT SEEMS LIKE THE STATE AND FEDERAL GOVERNMENT IS TRYING TO TAKE OVER EVERY ASPECT OF OUR BUSINESS...IT IS RATHER DEPRESSING

On March 4th, twelve of you insurance colleagues attended the IIABA's Federal Legislative Conference in Washington D.C. These agents took their personal time to attend this meeting to talk to the Minnesota Congressional Delegation on issues facing the insurance industry, independent agents, and small businesses. We split up into two teams to make sure that we could see all of our representatives on Capitol Hill to discuss these critical issues.

During our visits, it became frustrating and depressing to see how the legislative process is being handled in Washington D.C. To me it seemed as though none of the legislators were really interested in these business issues, rather they were more interested in the partisan politics. I think all of us felt that the issues that we wanted to bring up to our congressional representatives were important to us; however, the number one issue on their minds was the health care reform legislation that has been bantered around for over a year.

We discussed with these representatives the following issues:

Health care- The IIABA strongly opposes the current Obama healthcare legislation, we stress that agents have a major role in the health care delivery system; we strongly oppose the use of the reconciliation procedures to pass the bill, and finally, oppose the potential tax increases that would be levied on small businesses.

Insurance Regulatory Reform- The IIABA strongly opposes optional federal charter legislation, we strongly support state regulation and we feel that state regulation better serves the consumers in every state.

Taxes- The IIABA supports the extension of the 2001 and 2003 tax cuts which will help stimulate the economy. We oppose any tax increases on individuals or corporations, and finally, we feel that the current "estate tax" should be left alone in order to not affect small businesses throughout the country.

Crop Insurance- We lobbied in favor of extending the current federal crop insurance program with no changes in the way that it is being administered and sold by independent agents throughout the country. The program is a sound program that is supported by the farmers and the independent agents licensed to sell crop insurance.

Natural Disasters and Flood Insurance- The IIABA strongly supports both of these programs and we hope that the legislature will extend and improve the flood insurance program for the years to come. We also support the growing need for natural disaster insurance for relieving the industry when disasters occur.

Agent Licensing Reform- IIABA applauds the passage by the House of the NARAB Bill, which helps streamline agent licensing throughout the country. We are hoping in the near future that the Senate will concur and pass a similar bill.

Small Business Relief- We also discussed the fact that small businesses in Minnesota that we insure need assistance from the Federal Government rather than being left out in the cold. Lines of credit are being pulled by banks, jobs are being lost due to sales, and tax credits for hiring new employees are not a solution to small businesses. A sound economy, lower taxes, and an emphasis on jobs should be the goal of both parties in Washington D. C.

On behalf of the membership, I would like to thank the following agents who took the time and spent their own hard earned dollars to help tell our story to our Minnesota Congressional Delegation. I hope that you will also thank these individuals when you see them.

Chad Bjugan- Richfield State Insurance

Shawn Wensel- SMA Insurance

Dick McKenny- Advance Insurance Agency

Ken Ohl- Pioneer Heritage Insurance, LLC.

Mike Donohoe- James R. Weir Insurance Agency

Hal Tiffany- Hal Tiffany Agency, Inc.

Audrey Stearns- Midstate Insurance

Jerry Fraher- Hal Tiffany Agency, Inc

Rick Ahmann- R. J. Ahmann Company

Roberta Gibbons- Dyste Williams Agency

Karen Hawkinson - The Insurance Mart

IF YOU THINK MINNESOTA'S LEGISLATIVE CLIMATE IS BAD, YOU WOULD NOT WANT TO MOVE TO MICHIGAN OR NEW YORK!

At this conference, IIABA states and their lobbyist throughout the country meet to share what is going on in their respective states legislatively. While some states seem to have moderate legislative climates, others are going through hell.

For instance, in Michigan, their Democratic legislature is delivering a bill that will cut insurance premiums across the board by 20%. This includes agents' commissions. I know the Michigan association and their company partners are doing everything possible to stop these proposals from becoming laws. Can you imagine as an agent in Michigan with the economy the way that it is, unemployment over 20% state-wide, the impact this would have on an agency? We hope that proposals like this don't seep into our legislative process here in Minnesota.

Now in New York, another nightmare is happening. Their Democratic legislature is passing laws that all compensation shall be disclosed to an insured for all products purchased by a consumer in New York. This includes commissions, profit sharing, trips, and other monetary enhancements an agent/agency might receive from a company. The New York association and its company partners are fighting this issue today.

I know these two issues haven't been on the radar screen in Minnesota; however, here is how the process works. Both Democrats and Republicans normally have an annual retreat where the respective parties discuss legislative issues in their states. As some of these issues are discussed they may catch fire and move from state to state. We hope that this does not happen in Minnesota.

As an association, you should be proud of the legislative and regulatory reputation we have built over the years through our hard work and networking with both parties. Dominic has done a fantastic job for us with his ability to discuss insurance issues on a creditable basis with both parties. MIIAB is the association that has a reputation at the Capitol and at the regulatory agencies in which these individuals seek out our advice and expertise. We work well with our company partners, as well as the Insurance Federation of Minnesota, to help insure a strong and competitive insurance environment in Minnesota.

I am always asked by our members throughout the year and more often when it comes time to renew their membership with the MIIAB, "What are you doing for me?". In my opinion, we are working for you every day to insure that our members have a competitive insurance environment and outstanding products for their insureds in our oversight of the legislative activities taking place in St. Paul and Washington D.C. I equate this to an insurance professional buying or selling life insurance to their family or their insureds...you know that it is an intangible product, you know your family and clients need this protection, but you don't know when, and you feel secure that you have it, and when you need it, it will be there to protect your family and clients. That is what the MIIAB and the IIABA does for you on a daily basis!

PS- One major project in the legislature that MIIAB has spear-headed from the start is making sense out of the Certificates of Insurance issuance in Minnesota. Our legislative committee along with our lobbyist, Dominic Sposeto, have spent hundreds of hours working on this with insurance companies, the Minnesota Department of Commerce, the Minnesota Department of Labor and Industry, and now, trying to improve the law by moving this bill through the legislature. We have made great strides on this issue and if we can get this law passed this year, it will help streamline the process, reduce the number of certificates that you need to send out, and finally, will save you money in your agency by reducing your Customer Service Representatives workload. Watch for Dominic's updates in the near future, we may have to put on a grass roots campaign to move this through the legislative process.